Noah Holdings Limited

Good day and welcome to the NOAA Holdings Second Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. And to withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Ms. Jingbo Wang, CEO of NOAA Holdings. Please go ahead.

Thank you. Thank you. In the past two years, because of the epidemic, the global physical economy has been out of control and out of power. In addition to the influence of the Russian war, the global inflation has increased. In the first half of 2022, China's continued epidemic prevention and control policies have brought unprecedented challenges to the economic growth of the core areas of the Three Gorges and the Three Gorges of the Yangtze River. On the one hand, the supply and demand have been hit hard, and the demand has been significantly reduced. On the other hand, the expectation is weak. The second quarter of the economy is at the bottom, and the market is at the bottom. As the head office of a company in Shanghai, more than 1,800 employees were locked up at home during the second quarter. We observed significant changes in the investment sentiment of high-income families and private enterprises. Increasing the security and liquidity of assets is the first demand of customers. On the other hand, the global configuration needs of Chinese private enterprises and high-income families have been significantly improved. In the second half of 2022, Noya's judgment on customer needs and asset configuration suggestions Thank you. In the process of passive globalization of Chinese private enterprises and high-income families, there may be great progress, and there may even be unexpected surprises. Longya has been in business for 18 years and has gone through many market cycles. It is also lucky to suggest that customers withdraw from the status of moving into real estate in advance, as much as possible to protect the safety of customers' assets. Longya was listed in New Jiao in 2010. On July 13, 2022, it was successfully listed in Hong Kong 20 times and has also announced the opening of the transfer to the main listed companies. Today, I would like to express my sincere gratitude to the shareholders and investors who have given us a lot of support in the process of the second listing in Hong Kong. In a turbulent market environment, our international sales exceeded 5.9 times, and Hong Kong's public sales exceeded 3.3 times. Among them, the long-term value investors exceeded 2.6 times, and included many types of new institutional shareholders. It is very difficult in a low market environment. At the beginning of this month, after the board meeting was just opened, it approved the long-term annual bonus fund of Luo Ya.

On the agenda of today's teleconference, I will first share my views on the microenvironment, then introduce the overall performance of NOAA in the second quarter of 2022, the development of our major business segments, and our overall strategy. Next. Let's invite our group CFO Panqing to introduce the quarterly financial information followed by our Q&A. In the past two years, the global real economy deleveraging and capacity reduction caused by the epidemic and the impact of the Russian-Ukraine war have exacerbated global inflation. In the first half of 2022, China's continuous epidemic prevention and control policy have brought unprecedented challenges to the economic growth of core regions including the Pearl River Delta and the Yangtze River Delta. On one hand, the supply side has been impacted, and the demand side has contracted significantly. On the other hand, expectations are weakening, the economy reached the bottom, and the markets bottomed out in the second quarter. As the company headquartered in Shanghai, more than 1,800 employees experienced a lockdown at home in the second quarter. we observed that the investment sentiment of high net worth families and private enterprise clients has changed significantly. Improving the safety and liquidity of assets is the first demand of clients. At the same time, the global allocation needs of Chinese private enterprises and high net worth families have been significantly improved. NOAA's judgment on client demand and asset allocation suggestions are stability first, survival of the city, and domestic international due circulation for Chinese enterprises and high net worth families. We suggest that clients start a rebalancing of their global asset allocation. The ratio of Chinese and overseas asset allocation is 100 to 100. Domestic assets are allocated to the Chinese market, and overseas assets are allocated to the international market. Chinese private enterprises to establish new brands, or international headquarters in the overseas market and cultivate the international market completely independently. Domestic headquarters and international headquarters assume different functions. Over time, China's private enterprises and high-net-worth families may make great progress in the process of passive globalization and even have unexpected surprises. NOAA has been in business for 18 years and has experienced many market cycles. We're also lucky that we had suggested clients to withdraw from assets such as domestic real estate developers' bonds in advance and protected the assets of clients as much as possible. NOAA was listed on the New York Stock Exchange in 2010 and successfully listed in Hong Kong on July 13, 2022. We have also announced the start of the conversion to do primary listing. Today, I hereby sincerely thank the shareholders and investors who give us great support in the process of Hong Kong's secondary listing. Under the turbulent market environment, our global offering was 5.9 times oversubscribed, the Hong Kong public offering was 3.3 times oversubscribed, and specifically, we saw long-term value investors 2.6 times oversubscribed. During the secondary listing offering, we received support from many types of new institutional shareholders, which is quite an investor onboarding achievement in the sluggish market environment. At the beginning of this month, the Board of Directors approved NOAA's long-term annual dividend mechanism. We plan to pay dividends of no less than 10% of the annual non-GAAP net income in the future, aiming to deliver stable and sustainable return to shareholders.